Greening the roads: Assessing the role of electric and hybrid vehicles in curbing CO[formula omitted] emissions

Abstract

The transportation sector is the largest contributor to greenhouse gas (GHG) emissions, and electric and hybrid vehicles (EHVs) are among many solutions that can help reduce the consumption of fossil fuels and their resulting GHG emissions. This study addresses the significant and understudied question of how EHVs’ adoption influences CO2 emissions using panel U.S. state-level data over the 2016-2019 period and fixed effects. The study finds no statistically significant relationship between the adoption of hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and plug-in electric vehicles (PEVs) and CO2 emissions. These findings could be explained by adoption rates of HEVs and PHEVs that are too low to manifest statistically significant reductions in CO2 emissions from the potential displacement of internal-combustion engine vehicles (ICEVs). The findings also align with observations indicating that PEVs, although emission-free, are frequently adopted as supplementary rather than primary vehicles by multi-vehicle households in the U.S. The complexities surrounding EHVs and their impact on CO2 emissions highlight the importance of further research in understanding the role these vehicles play in the larger context of sustainable transportation as well as more nuanced research into adoption patterns, potential policy interventions, and broader environmental implications.